SYDNEY - Australia will refresh its critical minerals strategy to place greater emphasis on refining and processing, a senior Minister said on Tuesday, as competition for investment intensifies and supply-chain concerns persist.

Resources Minister Madeleine King said the revised strategy would guide the next phase of the industry's development, with a sharper focus on capturing "more economic and strategic value".

"It places greater emphasis on processing and refining critical minerals. Particularly where Australia has, or can develop, a comparative advantage," she said.

Australia is one of the world's largest suppliers of critical minerals, including rare earths used in defence and renewable energy. However, China dominates the complex and environmentally challenging refining stage of the supply chain.

Western nations are seeking to expand their critical minerals capabilities and diversify supplies as they move to reduce reliance on China for materials essential to the energy transition and national security.

Since the government released Australia's original critical minerals strategy in 2023, market conditions have become more difficult, competition for investment has intensified and supply-chain vulnerabilities have remained a concern, King said.

"The strategy will ensure Australia remains focused on areas where we can create the greatest long-term value," she said, adding that growth in the sector "won't be a solo endeavour".

US President Donald Trump and Australian Prime Minister Anthony Albanese signed a critical minerals agreement a year ago, targeting deposits worth $53-billion, though details on specific minerals or locations were not disclosed.

EU EXPORT PUSH

At the International Mining and Resources Conference in Sydney on Tuesday, Angus Campbell, Australia's ambassador to the European Union, said the new strategies could boost exports to Europe, which currently receives only a relatively small share of Australia's critical minerals shipments.

"There's a lot of untapped potential there," Campbell said.

Australia has been developing a strategic reserve which it plans to make available to allies. In January, Canberra said it would prioritise antimony, gallium and rare earth elements as part of its A$1.2-billion ($842.16-million) strategic reserve.

"It's not great piles of ore sitting somewhere in the outback," Campbell said. "It's much more about offtake agreements, forward contracts, demand and supply aggregation, these sorts of models."

The EU shortlisted tungsten, rare earths and gallium for its first joint stockpile of critical minerals, three sources familiar with the matter told Reuters in May.

"We are looking with a very big interest on the critical mineral strategic reserve of Australia," said Alberto Castronovo, Italy's special envoy for critical raw materials.

France's interministerial delegate for supplies of strategic minerals and metals, Benjamin Gallezot, said at the summit that Paris was seeking closer cooperation with Australia across the full critical minerals supply chain, from mining to refining.

"For example, on tungsten, we need mines, but even much more strategic today, we need refining," Gallezot said.

He also identified rare earths and battery materials as priority areas, describing Australia and Europe as having complementary strengths in the sector.